Can Production Subsidies Explain China's Export Performance? Evidence from Firm‐level Data*

Girma, Sourafel; Gong, Yundan; Görg, Holger; Yu, Zhihong

doi:10.1111/j.1467-9442.2009.01586.x

Cited by 114 publications

(78 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Potential ways for the government to facilitate such preferential treatment could for example be through government subsidies or lower taxes. For instance, Girma et al (2009) show that industry subsidies totaled well over US$300 billion between 1995 and 2005 with about half of that amount going to state-owned enterprises. Moreover, there are a number of industries that are heavily regulated in China, including the energy, natural resources, and finance sectors.…”

Section: Hypothesesmentioning

confidence: 98%

Mixing business with politics: Political participation by entrepreneurs in China

Feng

Johansson

Zhang

2015

Journal of Banking & Finance

View full text Add to dashboard Cite

a b s t r a c tWe study how Chinese private entrepreneurs benefit from participating in politics. Using original hand-collected data on listed firms controlled by private entrepreneurs, we document a significant positive relationship between political participation and subsequent change in firm performance. We also provide evidence that the change in social status cannot explain the change in performance. We then identify several ways through which firms gain preferential treatment when the controlling entrepreneur participates in politics: better access to debt financing, preferential tax treatment, more government subsidies, and superior access to regulated industries.

show abstract

Section: Hypothesesmentioning

confidence: 98%

Mixing business with politics: Political participation by entrepreneurs in China

Feng

Johansson

Zhang

2015

Journal of Banking & Finance

View full text Add to dashboard Cite

show abstract

“…In addition to these findings for Latin American, Girma et al (2009) show evidence of a positive but heterogeneous impact of production-related subsidies on exports in China. According to them, the program was more effective among more profitable firms and capital intensive industries.…”

Section: Related Literature and Motivationmentioning

confidence: 69%

Do Export Promotion Agencies Promote New Exporters?

Cruz

2014

Policy Research Working Papers

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. Terms of use: Documents inThe unauthorized commercial use of Bank documents is prohibited and may be punishable under the Bank's policies and/or applicable laws.Copyright © Inter-American Development Bank. This working paper may be reproduced for any non-commercial purpose. It may also be reproduced in any academic journal indexed by the American Economic Association's EconLit, with previous consent by the Inter-American Development Bank (IDB), provided that the IDB is credited and that the author(s) receive no income from the publication. Abstract Do export promotion agencies (EPAs) impact the probability of non-exporting firms to export? In the last decade many countries have introduced EPAs to support their firms in order to deal with asymmetric information problems and make feasible additional gains from trade. Some recent studies have found that the support of EPAs has been effective with respect to the intensive and extensive margins of trade. Nevertheless, due to the lack of information on non-exporting firms, few of them analyze their impact on the probability of promoting new exporters. This paper evaluates the impact of the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) on firms' export status using a unique firmlevel dataset which covers the full manufacturing sector in Brazil. In order to identify the impact of Apex's assistance on firms' export propensity this paper relies on a procedure of matching difference-in-difference estimators. The empirical results show evidence of the program's positive impact on the probability of promoting new exporters. Also, the effect is heterogeneous according to firms' size categories and sectors. Although the evidence of positive effect is robust, the low propensity to export for both the treated and the control groups reinforces the importance of other firms' determinants (e.g. productivity) widely emphasized by trade literature. JEL Classification: D04, D22 F13, F14 Cataloging-in-Publication

show abstract

“…Girma et al. () document robust evidence that production subsidies stimulate export activity in China. We use the ratio of production subsidy to product sales to measure the degree of production subsidy; (8) Foreign participation— we distinguish between two types of foreign investment here based on the sources of foreign investors.…”

Section: Exporter Types and Estimation Modelmentioning

confidence: 99%

Is Export Spillover Localized in China

Bao

Shao

Song

2014

Review Development Economics

View full text Add to dashboard Cite

The hypothesis of localized export spillover has been widely supported by the previous studies. Based on Chinese firm-level data of more than 47,000 firms from 2000 to 2006, this paper investigates whether export spillover is localized in China. Drawing on the idea of revealed comparative advantage, six export spillover indicators are constructed to capture both the within-and between-provinces, cities as well as industries spillover effects. The multinomial logit model estimation results show that there is no sign of localized spillover effects despite the fact that domestic firms gain from export spillovers due to geographic and industrial agglomeration effects. This is especially true for those new entrants to export markets. The finding indicates that there may be export congestions resulting from over-agglomeration of local exporters due to the rapid export expansion in China.

show abstract

Can Production Subsidies Explain China's Export Performance? Evidence from Firm‐level Data*

Cited by 114 publications

References 35 publications

Mixing business with politics: Political participation by entrepreneurs in China

Mixing business with politics: Political participation by entrepreneurs in China

Do Export Promotion Agencies Promote New Exporters?

Is Export Spillover Localized in China

Contact Info

Product

Resources

About